Rising cost of used cars may shock consumers
Posted on Wednesday, March 7, 2012 at 3:49:27 PM
The auto experts at CarGurus are expecting gas prices to climb to approximately $4.50 a gallon. As a result, fuel-efficient used vehicles will follow the trend with an expected increase of $15 percent by August.
There is a positive correlation between rising gas prices and the price of fuel-efficient used cars, as seen from 2011's prices rising to almost $4 and the jump in vehicle prices. However, unlike gas, the sticker price on vehicles never went down, which increased the amount of auto financing consumers needed to take out.
"Gas prices have proven a reliable indicator of where used car prices are headed, and consumers in the market for a fuel-efficient used car this year should be mindful of that correlation," said Langley Steinert, founder and CEO of CarGurus.
Consumers seeking a new vehicle may wish to consider buying a used vehicle before the summer to avoid the predicted increase in price. Auto financing may be easier to attain earlier in the year and the decreased cost could limit the time a person is left paying off the purchase.